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Bank Y and Bank Z both have assets of $1 billion. The ROA (return on...

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Finance

Bank Y and Bank Z both have assets of $1 billion. The ROA (return on assets) for both banks is the same. Bank Y has liabilities of $700 million while Bank Zs liabilities are $850 million. a. Calculate the capital of two banks. (10 marks) b. In which bank would you prefer to hold an equity stake? Explain your choice. (15 marks)

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